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What are the arbitrage bounds on the volatility of the price of a binary option? If the binary price moves too much (such that it violates the arbitrage bounds) what trades would you actually execute to capture the related profit?

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This is also called a Commodity Forex arbitrage. In order to perform a binary options arbitrage trade, traders should always note that such opportunities exist all the time; it is a matter of identifying what opportunities exist and how to make the best out of it.

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